Gathering Data through Market Testing

In addition to data analytics and market research, successful associations also let members and prospects vote with their wallets by maintaining a sound promotional test strategy. They let the market drive strategy and tactics.

Marketing tests provide real data that can substantially impact results and strategies. A test can help an association define the most effective messages, promotional schedules, pricing, marketing media, and product packaging.

One association, for example, recently concluded a test on the impact of a new-member dues discount. The association evenly split prospects in a membership acquisition mailing. Half were offered membership at full price and the second half received a $10 dues discount. The group receiving the discounted membership dues offer had a 40 percent higher response rate than the group offered the full dues rate. This added response more than paid for the discounted dues.

But the association examined the data beyond the front-end response rate. They tracked the members in both the full price and discount group over two full renewal cycles. After two years, they found that the discount group still out numbered those originally joining at full price by 35 percent.

By capturing, analyzing, and using data the association was able to effectively boost its membership acquisition program by more than 35 percent.

My question to you is, why don't more associations incorporate tests into their membership marketing plans?

1 comment:

Matt Baehr said...

Tony -

You are right. I know we should do test groups, but we just don't. I wish I had a better excuse. I will just point the finger at marketing and say they should do it. There. Excuse made and I feel much better. :)

Keep up the good blogging! Thanks for the link.